Insight
Iron ore’s sleeping giant – Simandou moves a step closer to development
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The involvement of the SMB-Winning consortium is a big step forward for the development of Simandou North. Political considerations are paramount, but ultimately much will depend on SMB-Winning’s view of the long term outlook for seaborne iron ore. In particular, will Chinese imports hold close to 1 billion tpy and will India emerge as a major importer of iron ore within the next ten years? One or both of these outcomes is necessary to make the project economically viable.
Table of contents
- What has happened?
- What are the Simandou deposits?
- Project economics
- Market impact
- Trans-Guinean or the highway
- China all but controls Guinean economy
- Summary
-
Scenario analysis
- Base case:
- Base case plus Simandou North:
- Scenario 1 (low Indian imports):
- Scenario 2 (high Chinese imports):
Tables and charts
This report includes the following images and tables:
- Guinea iron ore deposits
- A brief history of the Simandou project
- Iron ore contestable market cost curve 2030 (CFR China, 62% Fe fines equivalent)
- Simandou North project economics
- Simandou scenario analysis
What's included
This report contains:
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